Option. Property

bought or sold to be received or delivered by the buyer or seller in accordance with the terms agreed upon. Sometimes the buyer pays for the privilege of calling for the delivery of the property within a certain time if he so wills, but he is not obliged to take it; sometimes the seller pays for the privilege of delivering the property. In speculation an option is the purchased privilege of either - receiving or delivering a specified amount of anything (as ¥ stocks, grain, cotton, coffee, etc.) at a specified price within a specified time.. In stocks bought on buyer’s option the buyer may, when the option is for four days or more, demand delivery of the stock on any day within the time specified on one day’s notice to the seller. In stocks sold on seller's option, when the option is for four days or more, the seller may deliver the stock to the buyer on any day within the time specified on one day’s notice to the buyer. When a dividend becomes due on a stock during the pendency of an option on it the dividend is collected by the seller of the stock, who holds it, allows interest on it and pays the dividend, with the interest on it, to the buyer on the settle-: ment of the contract. When an option on a stock matures during the closing of transfer books the seller of the stock gives to the buyer of the stock a due bill for the amount of the dividend which is payable when the dividend is paid, but the due bill does not bear interest.; Also see Privilege. 400